Rhode Island General Laws 45-37.1-12. State not liable – Exceptions
Except for any obligations secured by mortgages which are insured by the Rhode Island industrial recreational building authority, the state is not liable for the payment of the principal of or interest on any bonds or notes of the corporation, or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds or notes of the corporation, nor any of its agreements or obligations, shall be construed to constitute an indebtedness of the state within the meaning of any constitutional or statutory provision whatsoever, nor shall the issuance of bonds or notes under the provisions of this chapter, directly, or indirectly, or contingently, obligate the state or any municipality or political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. Obligations issued under the provisions of this chapter, which are secured by mortgages insured by the Rhode Island industrial recreational building authority, in addition to being payable from the revenues pledged for those obligations, are secured by a pledge of the faith and credit of the state consistent with the terms and limitations of chapter 34 of Title 42.
History of Section.
P.L. 1967, ch. 11, § 1; P.L. 1980, ch. 229, § 8; P.L. 1981, ch. 419, § 4; P.L. 1988, ch. 84, § 39.
Terms Used In Rhode Island General Laws 45-37.1-12
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Rhode Island industrial facilities corporation, created and established as a nonbusiness corporation under and pursuant to chapter 6 of Title 7, as amended, and constituted and established as a public body corporate and agency of the state by § 45-37. See Rhode Island General Laws 45-37.1-3
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Municipality: means any city or town in the state. See Rhode Island General Laws 45-37.1-3
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- State: means the state of Rhode Island. See Rhode Island General Laws 45-37.1-3